Texas Auto Insurance Plan Association Requests 4.8% Commercial Rate Hike

The Texas Automobile Insurance Plan Association (TAIPA) has filed a request with the Texas Department of Insurance to charge new insurance rates for commercial automobiles. The filed rates represent a 4.8% increase in commercial automobile rates.

TAIPA proposed an effective date of March 1, 2021, for new and renewal business. TAIPA did not file new proposed rates for private passenger automobiles.

TAIPA is proposing changes in base rates for commercial vehicles that will generate an estimated overall change of +4.8% in commercial vehicle premiums. No changes are proposed to any territory or class rate factors.

The filing will be reviewed to determine whether TAIPA’s proposed rates are just, reasonable, adequate, not excessive, not confiscatory, and not unfairly discriminatory for the risks covered. TAIPA’s proposed rates must also be sufficient to carry all claims to maturity and meet the expenses incurred in writing and servicing the business.

Source: TDI

Topics Texas Auto Commercial Lines Business Insurance Pricing Trends